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Please note: The Frank Talk articles listed below contain historical material. The data provided was current at the time of publication. For current information regarding any of the funds mentioned in these presentations, please visit the appropriate fund performance page.

Chinese Railway Stays On Track
December 16, 2015

Frank Holmes Hi-Speed Train, ChinaThe Chinese railway system has changed dramatically since I last visited the Asian nation. I can remember taking the high-speed train from Shanghai to Beijing during a visit in 2011; at the time it was a fresh, dedicated line covering 819 miles in a little less than five hours.

In December of last year I wrote about China’s announcement for a proposed $230 billion high-speed rail system linking Beijing to Moscow. Its estimated distance was 4,350 miles and it would replace the Trans-Siberian Railway, cutting down travel time dramatically.

So how is this sector of the market holding up?

China continues to be a compelling, long-term growth opportunity and the government is focused on strengthening its economy. Fixed-asset investment (FAI) is considered a key driver of economic growth. According to UBS’ 2016 China Rail Outlook report, things look encouraging.

Rail Is Relevant to China’s 13th Five-Year Plan

UBS has a positive outlook on rail FAI in China next year. The group forecasts that FAI could reach RMB 840 billion, citing its relevance to China’s 13th Five-Year Plan.

2016 marks the beginning of the first year of the 13th Five-Year Plan (FYP), which goes through 2020, and is particularly significant when it comes to spending on urban rail transit and public-private partnerships, according to UBS. Urban rail transit is forecasted at an average annual investment of RMB 701 billion from 2016 through 2020.

The group expects the Chinese government to announce a higher FAI target for the 13th FYP, although it will likely be a conservative projection. As you can see in the chart below, FAI has historically risen above the estimated numbers, causing the need for upward revisions. Even then, actual FAI comes in higher still.

Railway Fixed-Asset Investment During China's Five-Year Plans (FYP)
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How Many Miles Exactly?

Total railroad operating length in China is expected to reach 118,000 kilometers, over 73,000 miles, by the end of this year according to UBS’ 2015 Outlook. Of those, the group believes high-speed rail passenger-dedicated lines could surpass 20,000 kilometers (12,427 miles).

China's Total Railway Operating Length
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UBS estimates that total operating length for urban rail systems specifically (mostly subways), can reach more than 9,400 kilometers by the year 2020. More subway project approvals and more tram systems leave room for this upside potential.

Exporting Rail Expertise

While UBS makes a strong case that domestic rail investment is poised to accelerate over the next five years, when it comes to overseas order growth, Xi Jinping’s "One Belt, One Road" economic project is another important driver.

The One Belt, One Road strategy is one of the most monumental initiatives among China’s various infrastructure programs. As I wrote earlier this year, it harkens back to the famed Silk Road and is intended to open up new trade routes to Southeast Asia, the Middle East and Eastern Europe.

It’s important to note that this project also promotes Chinese rail expertise to the broader Asian, European and even American markets.  Leading railroad infrastructure and equipment makers in China should continue to benefit from the initiative.

 

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

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Sweden Declares War on Cash, Punishes Savers with Negative Interest Rates
December 7, 2015

Among the endangered species in Sweden are the gray wolf, European otter—and cash. Back in June, I shared with you the story of how, in 1661, the Scandinavian monarchy became the first country in the world to issue paper money. (It was an unmitigated disaster, by the way.) Now it might be the first to ban it altogether.

All across Sweden, cash—the physical kind, not cash in the bank—is disappearing. Many if not most businesses have stopped accepting it. ATMs are now as uncommon as pay phones. Churchgoers tithe using mobile apps. Fewer and fewer banks even accept or dole out cash.

Here’s the chart showing the decline in the average yearly value of Swedish banknotes in circulation:

Average Value of Swedish Banknotes in Circulation is Rapidly Declining
click to enlarge

So what’s going on?

For one, the Swedish people have enthusiastically embraced mobile payment systems. Even homeless newspaper vendors now carry card scanners.

But that’s not the concerning part.

Cash’s demise appears to be orchestrated by Sweden’s central bank, which of course stands to benefit from the switch. In a purely electronic system, every financial transaction is not only charged a fee but can also be tracked and monitored. Plus, taxes can’t be levied on cash that’s squirreled away in Johan’s sock drawer.

Since July, interest rates in Sweden have lingered in negative territory, at -0.35 percent, forcing accountholders to spend their money or else see their balances slowly melt away. Negative rates can also be found in Denmark and Switzerland, where they’re as low as -1.25 percent. The Swiss 10-year bond yield plummeted to -0.40 percent on Tuesday, which means people are paying the government to hold their “investment.”

Nick Giambruno, senior editor of Casey Research’s International Man, calls negative interest rates in a cashless society a “scam.”  His perspective is worth considering:

If you can’t withdraw your money as cash, you have two choices: You can deal with negative interest rates... or you can spend your money. Ultimately, that’s what our Keynesian central planners want. They are using negative interest rates and the “War on Cash” to force you to spend and “stimulate” the economy.

The War on Cash and negative interest rates are huge threats to your financial security. Central planners are playing with fire and inviting a currency catastrophe.

Sovereign Man goes even further, writing:

Financial privacy has been destroyed. Banks are now merely unpaid spies of bankrupt governments, and they will freeze you out of your life’s savings in a heartbeat if some faceless bureaucrat orders them to do so.

Never-ending Regulations Suffocate Small Businesses and Investors

Over the years, we’ve seen corrupt, unbalanced fiscal and monetary policies wreak havoc in socialist countries all around the globe where governments often feel entitled to restrict and even confiscate their citizens’ assets. In 2008, Argentina nationalized approximately $30 billion in private pension funds. A little over two years ago, the Cyprus government ransacked citizens’ bank accounts to “fix” its own mistakes and mismanagement. Last year Venezuela put $700 credit card spending limits on vacationers visiting Florida. Limitations on how much someone can spend and save can be found in many countries, from Italy to Russia to Uruguay.

In example after example, people’s rights to save and freely hold cash have been disrupted, with tragic results—and today we’re seeing these disruptions in first-world countries such as Sweden, Switzerland and Denmark.

I have faith that the dynamic American political system will not allow these things to happen, but we need to be aware of events in other countries and be vigilant in protecting our assets.

At the same time, many poor policies here at home have disrupted how we save and spend. For example, it’s easier to open a credit card account than a savings or investment account—which obviously doesn’t encourage either of those things.

And a recent flood of new regulations passed down from the federal government continues to suffocate small businesses. Since 1960, the Code of Federal Regulations has grown from 22,877 pages to a bloated 175,268 pages in 2014.

Total Number of Pages in Code of Federal REgulations Has Expanded Dramatically
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A 2014 study conducted by the National Association of Manufacturers found that these regulations came with a hefty price tag of $2 trillion in 2012 alone, an amount equal to 12 percent of GDP. The negative effects of these laws trickle down for years through various businesses and industries, costing jobs and opportunities at wealth creation—and ultimately creating a downward multiplier effect on the country’s economy. 

In December 2013, USGI made the decision to exit the expensive money market fund business because of the increasing regulatory cost of anti-money laundering laws and FATCA. It had become too costly to bear the expense of subsidizing yields so they didn’t fall below zero. With zero interest rates and increasing regulatory costs, protecting the integrity of the $1 net asset value (NAV) had cost the money market fund industry nearly $24 billion in waived expenses between 2009 and 2013, according to the Investment Company Institute (ICI).

So what can we do to protect our wealth? One option is to store a portion of it in gold, which, compared to a basket of 24 commodities, has held on to its reputation as a long-term store of value.

Gold Has Remained Relatively Resilient in Commodities Rout
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American consumers recognize gold’s resilience and took advantage of lower prices in November. The U.S. mint sold 97,000 ounces of gold coins, up 185 percent from October, after selling out. Meanwhile, American Eagle silver coins hit an all-time annual sales record of 44.67 million ounces.

I always recommend having 10 percent of your portfolio in the yellow metal—5 percent in gold stocks, the other 5 percent in coins and bullion.

Gold has two pillars of demand: the Love Trade and the Fear Trade.

the two main drivers of gold demand
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The Love Trade is associated with traditional gift-giving during the Indian festival and wedding seasons, Christmas and the Chinese New Year. The Fear Trade, on the other hand, has to do with what we’re seeing in Sweden and elsewhere. Negative interest rates and poor government policies wipe out citizens’ ability to save. In such scenarios, investors have historically found shelter in gold.

 

The Chinese Renminbi Just Went Mainstream

international monetary fund IMF welcomes chinese Renminbi world currencies

Speaking of currencies, the International Monetary Fund (IMF), as expected, moved to include the Chinese renminbi in its Special Drawing Rights (SDR) currency basket last week, a decision that solidifies the Asian giant’s prominence in the global financial system.

This is indeed an historic milestone, not just for China but also emerging markets in general. The renminbi, also known as the yuan, is the first currency from such a country to join the elite ranks of the U.S. dollar, British pound, euro and Japanese yen. Global intelligence company Stratfor calls this “the start of a new era in the global economic structure” and an acknowledgment of “economic power in new parts of the world.”

It’s worth pointing out that the inclusion is largely symbolic. Many analysts are pointing out that it will have little near-term benefit to China, especially since the change will not go into effect until October 2016.

But according to BCA, among the long-term implications of IMF inclusion is that the “renminbi should eventually claim over 5 percent of global official reserves, or $400 billion, up from about 1 percent.” Currently, the renminbi ranks seventh worldwide as a percentage of global reserves, behind the Australian dollar and Canadian dollar.

Chinese Renminbi Poised to Grow as a Foreign Currency Asset
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To have the renminbi recognized as a reserve currency has been an important fiscal priority for Chinese leadership in recent years. This summer, the country’s central bank announced it had added to its gold reserves substantially, and later it devalued the renminbi 2 percent. That it’s finally been added to the SDR is a huge PR win.

It also means, though, that further economic reforms will need to be made. Country leaders are now charged with ensuring that the renminbi lives up to its status as a high-quality international reserve currency by maintaining its stability and ease of use.  

Global Manufacturing Poised for a Strong 2016

Just as we head into the new year, global growth bounced back a bit, alleviating investors’ fears that we were sliding into a recession. Although the global manufacturing purchasing manager’s index (PMI) cooled somewhat in November, it stayed above the three-month moving average for the second month in a row—something it hasn’t done in a year and a half.

Global Manufacturing PMI Slows in November
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China’s manufacturing stabilized in November after six straight months of declines. The Asian giant posted a 48.6 for the month, up slightly from 48.3 in October. It’s still below the key 50.0 mark but headed in the right direction.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. Some links above may be directed to third-party websites. U.S. Global Investors does not endorse all information supplied by these websites and is not responsible for their content.

The J.P. Morgan Global Purchasing Manager’s Index is an indicator of the economic health of the global manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The S&P GSCI Enhanced Total Return Index reflects the total return available through an unleveraged investment in specific commodity components of the S&P GSCI.

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This Chinese Sector Continues to Score
December 2, 2015

Over the summer the Chinese market experienced a major hiccup, causing concern that many Asian industries would be slow, or unable to recover. Since the June collapse, however, there is one sector that continues to score with investors, both here and overseas – sportswear.

The sportswear industry in China continues to look positive.

The Great Soccer Revival

Back in March the Chinese government announced its plan to improve the country’s outlook on sports, beginning with soccer.  The soccer reform plan issued by the State Council separated the Chinese Football Association from the General Administration of Sports of China, according to China Daily.

Hopes for the reform include decreased corruption and increased professionalism within the sport of soccer, or “football” as it’s called in China. Perhaps too, Chinese sports enthusiasts would be able to witness their men’s soccer team regain ground, having only competed in one FIFA World Cup back in 2002.

The Chinese education ministry has also played a role in this “soccer revival.” The ministry signed a three-year deal with sportswear brand Adidas to help promote soccer in schools, “with the hope of creating interest in the sport,” according to Barclays luxury goods analyst Julian Easthope.

Anta Sports, the world’s fourth-largest sportswear brand (that just launched its soccer line in November), is one of the direct beneficiaries of such reforms, in addition to better-known names like Adidas, Nike and Puma. Anta has seen steady growth since the beginning of this year – keeping pace even throughout the rough summer downfall.

Argentina Presidential Election Drove Investor Confidence
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Follow the Leaders

Perhaps another reason the people of China are paying more attention to soccer now is current leader Xi Jinping’s love for the sport. Average Chinese citizens look up to their leaders, and often will follow or play their leaders’ sport, explains portfolio manager Xian Liang who grew up in Shanghai.

Mao Zedong, for example, was best known for his passion for swimming. “In the 1950s and 60s public swimming pools were built all over Shanghai, just because Mao Zedong was a devoted swimmer and swam across the Yangtze at the age of 73,” says Xian.

Similarly, Deng Xiaoping, paramount leader of China from 1978 to 1992, was remembered for playing bridge, a card game also enjoyed by Warren Buffett and that Deng learned in France as a young student and revolutionary.

Mao and Deng enjoyed soccer, too. Mao played goalie in high school and Deng collateralized his clothes to pay for a soccer game ticket in Paris in his earlier years.

China’s Catching Up to America’s Love for Sports

Past game preferences aside, it’s clear that Xi’s ongoing spirit for soccer, paired with the opportunities presented by recent reform, is transforming China’s outlook on sports as well as consumer habits.

Although America still beats China when it comes to sportswear spending per capita, China is catching up. Spending per capita in China is U.S. $17 per year, compared to U.S. $285 per year spent by Americans, according to Barron's. Nevertheless, Deutsche Bank highlights Chinese sportswear sales at 16 percent, surpassing that of the broader retail market.

As a more health-conscious, sports-oriented society continues to emerge, Chinese luxury shoppers could also find new interest in sportswear brands that fit their active lifestyles a bit differently than say, Louis Vuitton and Gucci would.

No matter how you look at it, the industry is changing and sportswear brands continue to score, while other sectors have come up short.

 

Past performance does not guarantee future results.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the links above, you will be directed to third-party websites. U.S. Global Investors does not endorse all information supplied by these websites and is not responsible for their content.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more of U.S. Global Investors Funds as of 09/30/2015:  ANTA Sports Products Ltd, NIKE Inc.

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What We’re Paying Attention to Following the Paris Attacks
November 23, 2015

Ten days ago, 129 lives were brutally cut short when assailants affiliated with the terrorist group ISIS, also known as the Islamic State, stormed Paris in a series of coordinated attacks. Along with the rest of the world, we were shocked and saddened as the tragic news unfolded, worsening as the night progressed. Our thoughts are with the victims’ families and friends.

For us, the atrocity struck especially close to home, as one of our portfolio managers, Xian Liang, was in the city at the time of the attacks. We’re extremely grateful he and his wife returned home safe and sound. I wish the same could be said for the victims in Paris that day, the 224 on the Russian jet brought down by an ISIS-built bomb, the hostages in Mali Friday, and many others whose lives have been affected by the global scourge of terrorism.

We Take Our Role as Fiduciaries Seriously

As money managers, it’s our duty and responsibility to be cognizant of such geopolitical events—large and small, good and bad—and to consider all of the possible ramifications. The consequences often reach far and wide, and can be felt in the short-term (changes in investor confidence) as well as the long-term (changes in government policy).

Early last year, for instance, we were quick to adjust asset allocations when Russia invaded and annexed Crimea. We anticipated that sanctions would be imposed on the country, and indeed they were, by the U.S., European Union, Australia and other international organizations. These sanctions, coupled with falling oil prices, contributed to the Russian ruble’s dramatic breakdown.

Diesel, the seven-year-old belgian shepherd who was killed recently during a French SWAT raid

Against these challenges, I’m impressed by how strongly Russian stocks have performed lately. Last Tuesday, the Micex Index jumped to an eight-month high in ruble terms. This is especially interesting since both Brent oil and the ruble are way down. It suggests that investors are showing approval of President Vladimir Putin’s involvement in Syria.

Putin is also benefiting from a strong public relations push. The Daily Mail writes: “Russia has shown its solidarity with the people of France in an unusual way—by donating a new puppy to carry on the memory of Diesel, the police dog killed by a suicide bomber.”

It should come as a surprise to no one that, following the tragedy in Paris, defense spending will likely increase. French President François Hollande has already told Parliament that France is at war and will “be merciless” in its pursuit of justice. The country wasted no time in striking back against ISIS and has begun bombing raids in Syria.

As early as last Monday, stocks of companies that manufacture weapons and fighter jets traded up.

War Stocks Rally Following Attacks in Paris
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We own Lockheed Martin, manufacturer of the F-35, F-22 and F-16 fighters; Boeing, manufacturer of the Tomahawk cruise missile, F-18 fighter and more; and Northrop Grumman, which was recently awarded the contract to build America’s next generation of long-range strike bombers. Raytheon develops and manufactures guided missiles.

The U.S. Navy plans to buy more Boeing F/A-18E/F Super Hornets in the coming years.

International Travel to Be Hit

Understandably so, the terrorist attacks will have an impact on international travel, immigration and border security. France immediately tightened its borders, and other European countries quickly followed suit. Meanwhile, Poland’s newly-elected government rejected the European Union’s quotas for accepting refugees from Syria, an attitude that’s echoed by more than 30 U.S. states. The House of Representatives just passed legislation to suspend the admittance of 10,000 Syrian refugees, though it’s likely to be vetoed.

This is the climate we find ourselves in right now. It has a huge effect, at least in the near-term, on perceptions of international travel.

“Most people are risk-averse,” Xian says. “When my wife and I left for the airport by taxi the morning after the Paris attacks, we agreed not to travel to Europe again any time soon.”

Others share Xian’s attitude. Paris has for years been the world’s top tourist destination, but the City of Lights has already seen a huge drop-off in tourists as people have delayed or cancelled travel plans. Hotel stocks were up 10 percent in October but will likely face headwinds as a result of Paris and Mali.

Gold, Diamond and Oil Declines Good for Manufacturers

Xian stresses the importance of having gold exposure as diversification. A good diversifier is any investment that’s expected to have a low correlation with the rest of your portfolio, and gold historically has little to no correlation with equities.

The yellow metal has traditionally been seen as a safe haven in times of war, but so far we’ve seen little movement. Year-to-date, gold is down nearly 9 percent, and it could possibly end 2015 in negative territory for the third straight year.

Even so, the yellow metal has performed better than other select world currencies for the year, including the Russian ruble (-10 percent), Australian dollar (-11 percent), euro (-12 percent) and Canadian dollar (-13 percent).

Gold and Diamonds Follow the Same Downtrend
click to enlarge

Diamonds have likewise struggled over the past four years, but with the recent news that Canadian miner Lucara discovered the largest diamond in 100 years, investors might show renewed interest. The massive 1,111-carat diamond was unearthed in Lucara’s Botswana project. Although the stone has yet to be assessed, it’s worth noting for comparison that a 100-carat diamond sold at Sotheby’s in April for $22 million.   

Gold and Diamonds Follow the Same Downward Trend
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These declines over the past three and four years have been good for jewelry companies such as Tiffany, which I wrote about last December. Gold and diamond supply is now less expensive, so the company has margin expansion.

The same can be said of oil. Low prices have hurt South Texas, the Middle East, Russia and Colombia, not to mention drillers and explorers, but they’ve been a windfall for the end consumer, including manufacturers and airlines. Falling energy prices are finding their way into the global engine of growth.

$500 Billion Peace Dividend for Global Consumers and Businesses
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Many analysts expect to see crude oil prices tick up on mounting tension in the Middle East. During past military engagements, oil has typically performed well since a lot is required to fight a war. We haven’t seen prices move just yet—oil still sits at $40 per barrel—but it’s something we’ll monitor closely. As I said earlier this month, the global purchasing managers’ index (PMI) turned up in October after bottoming in September, and in the past this has been followed by a jump in oil prices.

Oil Trends Typically Drive by Global Economic Activity
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Inflation Rousing from Sleep

We learned this week that the consumer price index (CPI) rose 0.2 percent in October, suggesting that inflation is finally picking up steam in the U.S. and giving the Federal Reserve further excuses to raise rates next month.

Based on the 2-year Treasury yield (0.89 percent) and the headline CPI (0.20 percent), real rates now stand at 0.69 percent. (Real interest rates are what you get when you subtract the CPI from the Federal funds rate.) I’ve often explained that gold responds positively when real rates turn negative, as you can clearly see in the chart below, so we’re eagerly awaiting stronger inflation.

Real Interest Rates and Gold Share an Inverse Relationship
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In a note this week, Drew Matus, an economist at UBS, wrote that inflation in the U.S. is poised to jump in the next couple of months. The CPI measures the price of a basket of goods to the price of the same goods a year ago, so inflation fell dramatically between November 2014 and January 2015 as energy prices plunged.

But “absent a similar move this year, those sharp price declines will drop out of the year-over-year data, resulting in a rapid, technical acceleration in overall inflation measure,” Matus says.

If such inflation occurs—possibly as soon as January or February, Matus points out—real rates could have a better chance of dipping into negative territory, which would be constructive for gold prices.

Thanksgiving is this week, and in light of recent events, I think we all have ample reason to express gratitude to friends and loved ones. Everyone have a blessed week!  

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. By clicking the link(s) above, you will be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more of U.S. Global Investors Funds as of 9/30/2015: Lockheed Martin Corp., The Boeing Co., Northrop Grumman Corp., Lucara Diamond Corp.

The MICEX Index is the real-time cap-weighted Russian composite index.  It comprises 30 most liquid stocks of Russian largest and most developed companies from 10 main economy sectors.  The MICEX Index was launched on September 22, 1997, base value 100.  The MICEX Index is calculated and disseminated by the MICEX Stock Exchange, the main Russian stock exchange.

The J.P. Morgan Global Purchasing Manager’s Index is an indicator of the economic health of the global manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

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11 Numbers that Explain the World’s Largest Shopping Holiday
November 10, 2015

In 2009, Chinese entrepreneur Jack Ma single-handedly created the Singles Day sale by converting a fabricated holiday celebrated among lonely college students into what has become the biggest revenue-generator the world has ever known. By copyrighting the phrase “Double 11”—a play on November 11—and aggressively courting merchants, Ma’s gargantuan ecommerce company Alibaba manages to stay ahead of the competition and sell more merchandise in a 24-hour period than Black Friday and Cyber Monday combined.

Today, Alibaba controls around 80 percent of China’s ecommerce market and is giving global retail giants like Amazon a run for their money. To keep up with the stiff competition, Walmart plans to spend $2 billion over the next two years to improve its own ecommerce infrastructure.

When explaining the significance of Alibaba and Singles Day, I’m prone to pull out every synonym for “big” and “huge” I can think of. So instead, I’ll let the numbers speak for themselves. Below are 11 such numbers that help tell the story of Singles Day, the holiday that Jack Ma built.  

11.11
The date Chinese university students selected back in the mid-1990s as a sort of anti-Valentine’s Day for single people. What started as a joke has become the world’s largest shopping holiday.

$1 Billion
How much merchandise Alibaba sold last Singles Day within the first three minutes of the sale.

Over $9.3 Billion
Total sales within 24 hours. This amount far exceeds the combined sales revenue of Black Friday and Cyber Monday, the two largest American shopping holidays.

China's Singles Day Bigger Than Black Friday and Cyber MOnday Combined
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$12 Billion
What many analysts predict Alibaba will generate this Singles Day.

43 Percent
The percentage of Singles Day transactions made on mobile devices in 2014. Expect to see this number rise after the sales figures roll in this year.

China's Singles Day Bigger Than Black Friday and Cyber MOnday Combined

40,000
The number of merchants that will be participating this year, including global brands Disney, Apple, Costco, Macy’s and Lego.

6 Million
The number of items to choose from.

China's Singles Day Bigger Than Black Friday and Cyber MOnday Combined

$277
The average amount each shopper is expected to spend.

760 Million
The number of packages China’s postal service estimates will be needed to ship Singles Day orders. This is up 40 percent from the 540 million used last year.

1.7 Million
The estimated number of deliverymen and women that will be needed.

200
The estimated number of jets and airplanes that will be deployed to handle the sales volume in China alone.

China's Singles Day Bigger Than Black Friday and Cyber MOnday Combined

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All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Fund portfolios are actively managed, and holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more of U.S. Global Investors Funds as of 9/30/2015: Amazon.com Inc., Apple Inc, Wal-Mart Stores Inc.

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Net Asset Value
as of 09/25/2017

Global Resources Fund PSPFX $5.78 -0.04 Gold and Precious Metals Fund USERX $8.02 0.06 World Precious Minerals Fund UNWPX $6.69 0.06 China Region Fund USCOX $10.96 -0.46 Emerging Europe Fund EUROX $6.94 -0.06 All American Equity Fund GBTFX $24.34 0.10 Holmes Macro Trends Fund MEGAX $19.99 0.03 Near-Term Tax Free Fund NEARX $2.23 No Change U.S. Government Securities Ultra-Short Bond Fund UGSDX $2.00 No Change